The U.S. Securities and Exchange Commission (SEC) on Tuesday charged Mark D. Hanf, former CEO of Pacific Private Money Group LLC, and Hoai-Nam Chu Phan, former COO of a subsidiary, for allegedly orchestrating a Ponzi scheme. The SEC alleges they raised millions from investors through private funds, falsely claiming the money would be used for real estate loans, but instead used it to pay early investors and for personal expenses. The SEC has filed a lawsuit in federal court seeking permanent injunctions, civil penalties, and disgorgement of ill-gotten gains. The case highlights ongoing regulatory scrutiny of the private fund industry.
The U.S. Securities and Exchange Commission (SEC) on Tuesday charged Mark D. Hanf, former CEO of Pacific Private Money Group LLC, and Hoai-Nam Chu Phan, former COO of a subsidiary, with orchestrating a fraudulent offering. The SEC alleges that the duo raised millions of dollars from investors through their managed private funds, falsely claiming the funds would be used for real estate loans, but instead used the money to pay earlier investors and for personal expenses, in a classic Ponzi scheme.
The SEC has filed a complaint in the U.S. District Court for the Northern District of California, seeking permanent injunctions, civil penalties, and disgorgement of ill-gotten gains. The case underscores regulatory scrutiny of the private fund industry, highlighting the SEC's ongoing focus on potential fraud in this sector.
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